The California-based company, which had already laid off all of its staff and closed its European operation, will shut its US site by 8 March.
"The entire management team put their hearts and souls into this," said Ken Ross, eToys' spokesman.
"While we're disappointed, we're very proud of the many great things we've achieved."
As of 31 January, the company had debts of $274m. On Monday eToys said this figure could be "substantially" higher.
'Worthless' stock
eToys has also said that its stock is now "worthless". The Nasdaq stock market delisted the company's shares, which were trading at 9 cents per share, on Monday.
eToys first warned at the beginning of February that it might not meet Nasdaq's minimum requirements to keep its stock listed.
At the same time, the company said that its quest to find an investor to inject further capital was unlikely to succeed.
It had already warned in January that it only had enough cash to last until the end of March.
No employees
The company continued to work with its adviser, Goldman Sachs, on exploring strategic alternatives, such as a merger, asset sale or restructuring.
However, the writing was on the wall for the e-tailer, particularly as it had laid off the remaining 293 employees that worked for the company in early February.
"Certainly the climate we faced remained extremely harsh, and in this climate a buyer did not emerge," said Mr Ross on Monday.
About 700 employees had already been made redundant in January.
Closing the UK site
The redundancies followed the news that eToys was to pull the plug on its European site, based in the UK.
The UK site's sales in the run up to Christmas 2000 were twice those in the same period a year ago, but still below forecasts.
eToys did not fare much better in the US, where poor holiday sales hit its third-quarter results.
The company had a net loss of $85.8m in the third quarter, compared with a loss of $75.5m in the same quarter of 1999.
Launched in 1997
eToys was launched in 1997 by the internet incubator Idealab, as entrepreneurs competed to apply the Amazon.com model to other industries.
After initial glitches, it built up a good reputation for customer service - even building a state-of-the-art warehouse.
Although it was one of the most popular sites over the holiday period, its sales were not enough to cover its debts.
Despite its first-mover advantage on the internet and investment in customer service, it miscalculated the costs of running a retail business and suffered as giant High Street rival Toys R Us teamed up with Amazon.